Report: Microsoft Phasing out Microsoft Points

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According to publishing agreement between Microsoft and mobile developers, MS Points could be on the way out.

By Steven Hopper

Microsoft Points have long been a point of contention for Xbox LIVE gamers, requiring you to buy into the system before you can purchase much of the content available through the service. Users have been critical of the point system, which can be confusing to gamers simply looking to buy their games and content without the rigmarole of purchasing points, and frustrating when unusable points are left over.

Over the years, the use of Microsoft Points has spread beyond Xbox LIVE to other Microsoft services, including Zune Marketplace, Games for Windows, and Windows Phone. The system is engrained in just about every section of Microsoft's online purchasing presence, but that might not be the case for much longer.

It appears that Microsoft might be phasing out the system in favor of straight up money transactions. Inside Mobile Apps is reporting that by the end of 2012, real world money will be used for all transations moving forward. Any outstanding balances will be switched over to the account's local currency. The site cites publishing agreements between mobile developers and Microsoft, warning devs to plan accordingly for the upcoming change.

While this is lodged firmly into the rumor camp (Microsoft has given the standard "we do not comment on rumors or speculation" response), we can't imagine too many Xbox 360 gamers would be bummed out of Microsoft got rid of Microsoft Points. What do you think?